Pphe Hotel Share Discussion Threads

[stevenlondon3] 20/1/2015 11:26

STR Global indicated that December room rates in London were up 8.3% on previous year - underpins last trading update.

[snadgey] 23/10/2014 18:18

Pausing after the recent share price weakness? Next leg up after IMS on 4th Nov?

[stevenlondon3] 13/5/2014 07:13

Good to see the revenue growth picking up.

[tintin82] 19/11/2013 22:52

I am out. A firm believer in 'no news tends to be bad new' and with no mention of debt in the IMS, i start to worry. Particularly as the huge debt is the only downside to this share. I shall keep a close eye on this one, but stepping to the side for now.

[bench2] 05/11/2013 15:08

IMS out today but no news on debt , int cover etc . Hardman note out to say that this is a difficult comparison as av room rate last year was boosted by the Olympics . Share price has come off the highs and will await better news on Revpar growth from London and Europe .

[thorpematt] 01/4/2013 16:12

bench2
I reckon your summary is pretty much it.


Debt is definately high and gives a hefty EV when compared to the MC.

I'd comment that cash conversion (i calculated 64%) is a bit low.

In terms of debt repayment, I like to see enough operating cashflow to pay it back quickly if required. With 43m euros of OCF vs 415M net debt this isn't the case.

Of course the whole thing is backed by some tangible assets. But again no discount here since EV is 215% of NAV by my calcs.

In terms of EV to profit (after tax) i.e an EPS calculated to include debt I calc a ratio of 23 (ish).

Now like others have said I'm keen on the brand/ model and in some respects it looks cheap but I'd welcome any comments on my (dodgy probably) maths.

[bench2] 07/3/2013 20:17

Hardman note out today still bullish , and interest cover improving .

[bench2] 05/3/2013 22:23

All very quiet the prelims looked fine and the 12p div was in line with Investec , Hardman forecast . The figures are all in Euros but converting to sterling at 1.16 gives PTP of £16.17m ( excluding the 49.2m euro Cap Gain ) so EPS of about 39p at a nil tax rate . Why so cheap with such good assets . Eye watering debt of circa £400m vs mkt cap of £120m , also tiny free float of 26% , not in any index , and ultimately this is controlled by a 74yr old Chm via the Red Sea Group in Israel . The CEO owns 20% and 9% is owned by a Cyprus based property co . No UK institutions involved at all . I bought a small amount for my ISA at 215p on the Hardman note on 10 Sept 2012 , but without some comfort about the reputation of the Papouchado family I will stay a very small holder ... NB the interest cover in 2011 was only 1.36 times . Scary !!!!!! but I am fond of Park Plaza hotels . ......Discuss ....am I too much of a wimp ?

[foxman14] 24/1/2013 07:58

I make that a beat on the revenue target for 2013 never mind 2012!

[douglasallen] 07/1/2013 00:29

Have just seen this on the FT website.



An Asian buyer has bought London (Stratford) Olympic hotels for £58 million, for 350 rooms. That works out to approx. £165,000 a room.

Park Plaza has approximately 2000 London hotel rooms. In significantly better locations, mainly West End locations.

[douglasallen] 04/1/2013 17:12

No problem Cel, let me know your thoughts.

Cheers.

[celeritas] 04/1/2013 15:18

Thanks DA I'll have a better look when I get chance.

[douglasallen] 04/1/2013 14:44

Sure Cel..

NAV as of june 2012 was €6.07 a share.

Debt increased to €477mil, however this was due to increasing ownership in 9 Netherlands hotels.

Net equity is €200mil or ~400p a share. That is total assets - total liabilities.

Debt is well within covenants and agreements on debt are until 2015-2018.

Here is some more information on the hotel development pipeline.

EPS set to be around 37p per share for this year.

[celeritas] 04/1/2013 14:14

PPHE Hotel Group has applied for planning permission to construct a new hotel at the front of the Site. If planning permission is not obtained by 14 December 2012, PPHE Hotel Group is required to repurchase the Site at an effective price of approximately £7.6 million

DA, do you know any more about the planning for this hotel.




Do you have the total NAV and current debt level

[douglasallen] 04/1/2013 13:31

Would like to know other peoples thoughts and opinions on PPH.

It's a bit lonely atm.

Cheers!!

[douglasallen] 04/1/2013 13:14

Just jumped in here....

Way too cheap on a variety of metrics, good assets, good trading and improving conditions.

Roll on 300p+.

Other than the debt, which i am not to fussed about as the net shareholder equity is €200mil or 400p a share, I cannot understand why this stock is so cheap.

Just a case of being patient and waiting for the value to out itself.

[douglasallen] 04/1/2013 13:10

Found PPH last night when doing some stock screens.

This stock is an absolute gem, I have put an order with my broker today to pick up some stock.

PPH is not just cheap in a general sense, but it is so undervalued compared to peers, on several valuations, P/E, Assets, Yield, Price to cashflow.

Yielding over 5%, 7.7x P/E, growing at 15%+ a year!! Net equity per share is 400p based on hotel NAV - liabilities and a lot of the hotels are central London so highly liquid. Also if the yield was to normalise to the industry average around 2.5-3.0% then the share price would need to appreciate to around 400p. Based on the sector average P/E the share price would be between 364-420p.

Looking for 400p in the next 6-12 months. This valuation gap won't last for long as the company have said that they are exploring ways to release equity value from the London hotel assets and expect to announce in Q1 2012.

Nice uptrend on the charts too, should see PPH slowly tick up as the valuation gap disappears.

GLA.

[douglasallen] 04/1/2013 13:01

Company website -

Edison research note -

Investec Bank currently have a BUY rating on PPH with price target 330p

Current yield ~5%, sector average yield (IHG, WTB, MLC) ~2.5%

---P/E - Price to Cashflow
PPH 8.01 3.01
IHG 17.94 8.68
WTB 15.98 10.04
MLC 14.27 10.57

[whealan] 07/11/2012 10:29

Mind you, you could have made a lot of money on Tesco over the years until they were rumbled. There are a lot of people who don't demand much but the worm finally turns.

[stevenlondon3] 07/11/2012 09:30

The overall reviews on hotel.com look more positive but there is certainly room for improvement.

[whealan] 06/11/2012 12:44

I care and have been watching this share for a while. One thing that worries me though is the poor standard of hotel staff (and therefore management) if TripAdvisor reviews are to be believed. Some of the tales are horrific.

[stevenlondon3] 06/11/2012 09:19

Company today has announced earnings will be ahead of market expectations. Does anyone else care?

[foxman14] 08/3/2012 08:06

Anybody else involved here?
I make that a big beat on both eps and the dividend.